Voluntary Tax-Deferred Savings Plans

• Alternate Benefits Program Additional Contributions
• State Employees' Deferred Compensation Plan (NJSEDCP)
• Additional Contributions Tax-Sheltered Programs (ACTS)
• Supplemental Annuity Collective Trust (SACT)
• Investment Carriers
• Resources To Help You
• Voluntary Savings FAQs

Alternate Benefit Program (ABP) Additional Contributions

Type of Plan

IRC Section 403(b)

Who's Eligible

Members of the Alternate Benefit Program

Employee Contribution

• Under age 50: A combined pre-tax and after-tax contributions: $17,000
• Age 50 & Over: A maximum pre-tax and after-tax contributions: $22,500

How it Works

You may voluntarily tax shelter a portion of your salary from federal income taxes while saving for retirement. Federal income tax is not due on deferred amounts or accumulated earnings until you receive a distribution (payment) from your account.

How to Enroll

• Complete enrollment forms from your investment carrier and return them to your carrier.Retain a copy for your files.
• Complete a Carrier Allocation/Salary Reduction Agreement.
• Submit copies of the above-mentioned items to University Human Resources, 57 US. Highway 1, New Brunswick, NJ 08901-8554. Campus mailing address: ASB II, Cook Campus.
• You may enroll using the UHR Online enrollment system.

How to Make Changes

You may change or cancel your salary reduction amount online using the online Tax Deferral Limit system or by completing and submitting a Carrier Allocation/Salary Reduction Agreement form to University Human Resources, 57 US. Highway 1, New Brunswick, NJ 08901-8554. Campus mailing address: ASB II, Cook Campus.

 

State Employees' Deferred Compensation Plan (NJSEDCP)

Type of Plan

IRC Section 457 – Pre-Tax Contributions

Who's Eligible

To enroll in the NJSEDCP, you must be employed by Rutgers University or the State of New Jersey or an eligible agency, authority, commission, or instrumentality of state government.

Employee Contribution

2012 Maximum Employee Contribution Amount:

• Under age 50: A combined pre-tax and after-tax contributions: $17,000
• Age 50 & Over: A maximum pre-tax and after-tax contributions: $22,500
• If eligible to make Special 457 Catch-up contributions: You may make a catch-up contribution in addition to your regular contribution during the last three years of employment prior to normal retirement. The allowable catch-up amount is one times the contribution amount for that year.

How it Works

You may voluntarily tax shelter a portion of your salary from federal income taxes while saving for retirement. Federal income tax is not due on deferred amounts or accumulated earnings until you receive a payment from your account. .

Investment Options

A broad array of investment options.

How to Enroll

• Complete the NJSEDCP enrollment kit.
• Return the completed forms to Prudential Retirement.
• Enrollment kits may also be obtained from University Human Resources. To have an enrollment kit mailed to you, contact UHR at 848-932-3020.

 

Type of Plan

IRC 457 (Roth Contributions)

Who's Eligible

To enroll in the NJSEDCP, you must be employed by Rutgers University  or the State of New Jersey or an eligible agency, authority, commission, or instrumentality of state government.

Employee Contribution

2012 Maximum Employee Contribution Amount:

• Under age 50: A combined pre-tax and after-tax contributions: $17,000
• Age 50 & Over: A maximum pre-tax and after-tax contributions: $22,500
• If eligible to make Special 457 Catch-up contributions: You may make a catch-up contribution in addition to your regular voluntary contribution during the last three years of employment prior to normal retirement. The allowable catch-up amount is one times the pre-tax contribution amount for that year.

How it Works

Roth contributions are made on an after-tax basis so the amount you contribute is included in your W-2 in the year you make your contribution. Since you already paid income tax on your Roth contributions, a withdrawal of your Roth contributions is always 100% federal income tax free. Once your distribution is ‘qualified’, you can take Roth earnings from your account free from federal income tax.

Roth contributions combine the saving and investment features of a traditional deferred compensation plan with the tax-free distribution features of the Roth IRA.

In addition:

• The plan feature allows participants to make after-tax contributions to their Deferred Compensation Plan (457 plan).
• Earnings accrue tax-free.
• Distributions of Roth contributions are tax-free in retirement (if the Roth account is held for at least five years and distributed after age 59 1/2).
• Your after-tax Roth Contributions are invested in your NJSEDCP account, as are any pre-tax contributions you make to the Deferred Compensation Plan (NJSEDCP).
• Your Roth money is tracked separately from your pre-tax money, and will appear as a separate item on the NJSEDCP participant website and on your NJSEDCP statements.

How to Enroll

You need only select an allocation percentage for your Roth contributions. You may do this by logging into your account at Prudential online. The contributions will be made to your existing NJSEDCP account.

If you do not have an existing NJSEDCP account, you may enroll and begin making Roth and/or pretax contributions at any time. Simply visit www.prudential.com/njsedcp or complete an enrollment form.

For additional information about the Roth Contributions visit the Prudential website. You may contact your Prudential representative, Susan McAleavey at 1-866-657-3327. You may call a Benefits Specialist at 848-932-3990 and visit the Roth 457 Contributions FAQs.

Additional Contributions Tax-Sheltered Programs (ACTS)

Type of Plan

IRC Section 403(b)

Who's Eligible

Members of the Public Employees' Retirement System (PERS) and members of the Police and Firemen's Retirement System (PFRS)

Employee Contribution

• Under age 50: A combined pre-tax and after-tax contributions: $17,000 in 2012
• Age 50 & Over: A maximum pre-tax and after-tax contributions: $22,500 in 2012

How it Works

You may voluntarily tax shelter a portion of your salary from federal income taxes while saving for retirement. Federal income tax is not due on deferred amounts or accumulated earnings until you receive a payment from your account.

How to Enroll

• Complete the following form: Carrier Allocation/Salary Reduction Agreement
• Send carrier enrollment application directly to the carrier. Keep a copy for yourself.
• Send the Carrier Allocation/Salary Reduction Agreement form to University Human Resources, 57 US. Highway 1, New Brunswick, NJ 08901-8554. Campus mailing address: ASB II, Cook Campus.

How to Make Changes

You may change your salary reduction amount by completing and submitting a Carrier Allocation/Salary Reduction Agreement form to University Human Resources, 57 US. Highway 1, New Brunswick, NJ 08901-8554. Campus mailing address: ASB II, Cook Campus. Forms must be returned by the 10th of the month to be effective the first payroll of the following month.

 

Supplemental Annuity Collective Trust (SACT)

Type of Plan

IRC Section 403(b)

Who's Eligible

Members of the Public Employees' Retirement System (PERS) and Police and Firemen's Retirement System (PFRS)

Employee Contribution

You may contribute between 1% and 10% of your base salary.

Limits:

• Under age 50: A combined pre-tax and after-tax contributions: $17,000 in 2012
• Age 50 & Over: A maximum pre-tax and after-tax contributions: $22,500 in 2012

How it Works

SACT is a voluntary investment program that provides retirement income in addition to your basic pension plan. Contributions are invested conservatively in the stock market.

SACT Regular Plan
Contributions are made post-tax. When funds are withdrawn, contributions are not subject to federal tax. However, your earnings are taxable.

SACT Tax-Sheltered Plan
A portion of your salary is tax deferred. Federal income tax is not due on deferred amounts or accumulated earnings until you receive a distribution (payment) from your account.

How to Enroll

• Enrollment is done on a quarterly basis.
• Complete a SACT Enrollment Request, available from University Human Resources.
• Complete a SACT Salary Reduction Agreement required for SACT Tax Sheltered Plan.
• Mail completed forms to University Human Resources, 57 US. Highway 1, New Brunswick, NJ 08901-8554. Campus mailing address: ASB II, Cook Campus.
• University Human Resources will certify the enrollment and forward it to the SACT office. Enrollment will be effective the 1st of the next quarter.

How to make Changes

• You may change or suspend your salary reduction amount by completing and submitting a SACT Salary Reduction Agreement form to University Human Resources, 57 US. Highway 1, New Brunswick, NJ 08901-8554. Campus mailing address: ASB II, Cook Campus.
• University Human Resources will certify the change and forward it to the SACT office. The change will be effective the 1st of the next quarter.
• The SACT Salary Reduction Agreements may be filed quarterly.
  

Investment Carriers

 

Resources To Help You
Benefits Specialist	848-932-3990
Voluntary Savings FAQ
Roth Contributions FAQ
Division of Pension & Benefits - NJSEDCP Information
Prudential NJSEDCP Brochure
Division of Pension & Benefits - ACTS Information
Division of Pension & Benefits - SACT Information
Deferred Compensation Fact Sheet

To submit a comment or to report any problems with this site, please email us. For questions about University Human Resources programs and services, please email our Operations Team.

© 2010 Rutgers, The State University of New Jersey. All rights reserved.

Last Updated: 12/14/2011